Data Analytics for Accounting – 3rd Edition by Vernon Richardson, Ryan A. Teeter & Katie L. Terrell | Complete Test Bank (Chapters 1–9) | Graded A+

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Test Bank for Data Analytics for Accounting 3rd Edition

by Vernon Richardson, Ryan A. Teeter & Katie L. Terrell


All Chapters (1-9)| Graded A+




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Answers at the End of Each Chapter
Chapter 01

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
address business questions.

⊚ true

⊚ false



2) The process of data analytics aims to transform raw information into data to create value.

⊚ true

⊚ false



3) Data analytics has the potential to transform the manner in which companies run their
businesses, however it is not practical in the near future.

⊚ true

⊚ false



4) Auditors can use social media to hear what customers are saying about a company and compare
this to inventory obsolescence and other estimates.

⊚ true

⊚ false



5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breeching independence.

⊚ true

⊚ false




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6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.

⊚ true

⊚ false



7) The I in IMPACT Cycle represents Identify the Question.

⊚ true

⊚ false



8) The M in IMPACT Cycle represents Master the Data.

⊚ true

⊚ false



9) The P in IMPACT Cycle represents Predict the Results.

⊚ true

⊚ false



10) The A in IMPACT Cycle represents Analyze the Data.

⊚ true

⊚ false



11) The C in IMPACT Cycle represents Continuously Track.

⊚ true

⊚ false



12) The T in IMPACT Cycle represents Track Outcomes.

⊚ true
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⊚ false



13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.

⊚ true

⊚ false



14) Data analysis through data manipulation is performing basic analysis to understand the quality
of the underlying data and its ability to address the business question.

⊚ true

⊚ false



15) To be proficient in data analysis, accountants need to become data scientists.

⊚ true

⊚ false



16) By developing an analytics mindset, accountants will be able to recognize when and how
data analytics can address business questions.

⊚ true

⊚ false



17) While it is important for accountants to clearly articulate the business problem, drawing
appropriate conclusions, based on the data, should be left to statisticians.

⊚ true

⊚ false




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